Bitcoin is a digital property.
FTX is an unregulated security.
Only a fool would knowingly/willingly take on counterparty risk.

BREAKING: FTX had a “backdoor” built into its accounting software by SBF, which he used to move billions without triggering alerts to other staff, auditors etc - Reuters

BREAKING: SBF was trying to sell his 7.6% share of Robinhood, worth $472M, on the app Signal. The shares were held by an Antigua and Barbuda entity called Emergent Fidelity, which is personally controlled by Bankman-Fried and NOT included in the FTX bankruptcy filing." - Financial Times

Add FTX name to the list:
Lehman, Bear Stearns, Enron, Archegos, 3AC, Celsius, MF Global, LTCM, Peregrine, Washington Mutual,
Penn Square, Worldcom, Digital, etc

Where there was financial mismanagement one usually finds excessive leverage, corruption, all due to human greed, and that finance isn't linear and finance doesn't conform to any physical laws. Some on the list didn't realize that the world around them changed. . . meaning that they relied on the trend is their friend and kept spending farther into deb Everyone also believes that management can control the corporate outcome.

Doesn't matter the corporate status, all human systems are fallible because they are run by humans. Economics doesn't explain greed as that is not a rational actor. . . Behavioral economics does, and this scenario, happens, over and over and over again.

Which is easier? grow a company at 16% a year for 20 years? or go become financially insolvent?

Any guess as to how much $$$ Brady lost in FTX?

Don’t forget to add that the most important Bitcoin dynamic requires a high-order level of faith that there is a greater fool out there willing and able to keep the pyramid from collapsing.

And there will be a book, from one of the best non fiction financial writers of our times

H'''wood FTX Frenzy as Michael Lewis Reveals He Spent 6 Months with Founder

Will be interested in the details. . .

ever since Mt Gox, there has always been a question about the security of ownership of tokens, and the ability to keep them safe from the platform/exchange operator. And the MtGox heist has never been solved many years later. This security issue has always been my issue with the whole crypto currency usage as not a serious investment option.

Mt. Gox - Wikipedia

The cast of characters in the FTX corruption is unbelievable

see the FDIC letter

Who's Dan Friedberg? From Excapsa. You know, the company that made poker software that allowed employees to cheat at poker to make money, and then said people were just butthurt they lost at poker.

There is the letter original link: https://www.fdic.gov/news/press-rele...son-letter.pdf

Which doesn’t really mean Bitcoin or crypto in general are sketchy. Of course other things make them sketchy depending on how you look at them. But slimy guys in finance? Kinda the norm, right?

Joe

“(Why do you rob banks, Willie?) Because that's where the money is.”
― Willie Sutton, Where the Money Was: The Memoirs of a Bank Robber

The probability for slimy higher here than anywhere else, for the Willie Sutton rule.
Which is why after working in the industry, I am skeptical about most all financial sales pitches.

Willie is literally saying something as obvious as “the sky is blue” but I could not agree with you more and since you are from the industry it carries much more weight.

Do you own any crypto?

Joe

Ah, never, thieve's currency. read some of my prior recent posts. every since the MtGox debacle, there has never been any guarantee of account segregation at the exchanges such that i could trust guarantee an account. However, since there is no intrinsic value, no reason to even think about it.

finance guy

That is not what I want to hear!!!!


But I appreciate the comment :)

Joe

Reminds one of the stock market…

Ask Larry, he knows


https://www.youtube.com/watch?v=BH5-rSxilxo

Can’t wait to read the book, Michael Lewis is an awesome writer and has a way of being thoroughly researched and spot on. Two of my favorite books are written by him, Liar’s Poker and The Big Short. I lived within the inner circle of those books stories during my career and he is incredibly accurate in his descriptions of the goings on in the investment world in both books. He was accurate right down to the tendencies, mannerisms, and personalities of many of the main characters in the books, who I had extensive working relationships with, both good and bad.